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Business, 25.01.2020 03:31 mella98

The new cfo thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.20, without affecting either sales or net income. assume that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to reduce common equity. what is the dollar amount of inventories that must be sold to achieve the industry-average current ratio?

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